Debt Relief Under Fire: "Not Proper Aid"

April 12, 2005 (Financial Times, UK)—According to a recent editorial in the Financial Times (FT), governments that lend money for commercial purposes, such as with export credits, should expect to be treated more like commercial entities. However, debt relief granted to Iraq, among other nations, is being counted against rich nations' obligations toward real financial aid. Iraq's debt relief is not proper aid, and creditors should not pretend it is, says the FT. In a related FT article of April 10, 2005, Richard Manning, chair of the OECD's development assistance committee, echoed this opinion: "At the time such loans are written off, they are counted at full face value. It does not reflect a real transfer of resources.” Read this editorial in the Financial Times. Read the full Financial Times editorial (April 12, 2005) The Aid That Isn't . Read the related article in the FT on the increase in debt relief used as aid. Read the full FT article (April 10, 2005) Official Aid to Poor Nations Climbs by 4.6%.